The First Home Super Saver Scheme (FHSS)

Contribution and release limits are set by the federal government and can be indexed or changed over time. The figures below are correct as at August 2026. Always check current limits on the ATO website before you rely on them.

What is the FHSS Scheme?

The First Home Super Saver Scheme lets eligible first home buyers make voluntary contributions into their superannuation fund, then withdraw those contributions (plus associated earnings) later to help fund a deposit. It’s essentially a tax advantaged way to grow your deposit savings faster than a regular savings account.

Why It Works: The Tax Angle

Money you earn through your employer is taxed at your marginal tax rate, which for a lot of working Australians sits at 30% or higher once you’re earning over the middle income brackets. Voluntary contributions into super, on the other hand, are generally taxed at a maximum of 15%.
That difference is the whole point of the scheme. By directing some of your savings through super instead of your regular bank account, you keep more of what you earn, and it can also grow with investment earnings while it sits there, since most super funds invest contributions rather than leaving them as cash.

How Much Can You Access?

  • You can contribute up to $15,000 per financial year through voluntary contributions.
  • You can withdraw up to $50,000 in total in eligible contributions (plus associated earnings) across all years.

Who’s Eligible?

  • You must never have owned property in Australia before
  • You must be 18 years or older at the time you request the withdrawal
  • You must not have previously made an FHSS release request
  • The contributions must be voluntary, either salary sacrificed or personal after tax contributions you claim as a deduction, not compulsory employer contributions

How It Works, Step by Step

Step 1: Make voluntary contributions. Either ask your employer to salary sacrifice a set amount each pay cycle, or make personal contributions directly into your super fund and lodge a Notice of Intent to Claim a deduction with your fund.
Step 2: Let it sit and grow. Your contributions (net of the 15% contributions tax) sit in your super fund and generally attract investment earnings over time, just like the rest of your super balance.
Step 3: Apply for release through the ATO. When you’re ready to buy, you request an FHSS determination through myGov, which tells you exactly how much you’re eligible to release. Once you’re ready, you submit a release request and the ATO arranges for the funds to be paid out to you, generally within a few weeks.
Step 4: Use it toward your deposit. You have a window (currently 12 months, with an extension available) from receiving the funds to sign a contract to purchase or construct your first home.

Case Example

Steven is 27 and earns $85,000 a year. Instead of leaving his savings in a regular bank account, he arranges to salary sacrifice $12,000 a year into his super fund for three years, $36,000 in total. Because it’s taxed at 15% going in rather than his marginal rate of around 32%, he keeps significantly more of that money than if he’d simply saved it from his take home pay, and it earns investment returns along the way inside his super fund.

When he’s ready to buy, Steven applies through myGov, receives a determination confirming his eligible release amount, and withdraws his contributions plus earnings to put toward his deposit, on top of what he’s saved separately outside super.
I like to use this calculator.

Should You Use It?

For most people who are already planning to buy their first home, this is a low effort, genuinely useful way to boost a deposit faster than a standard savings account would allow. It costs you nothing beyond a bit of admin with your payroll or super fund, and the tax saving is real money in your pocket rather than a hypothetical benefit.
The main trade off is liquidity, once it’s in super, it’s generally locked away for this specific purpose (or until retirement) unless you go through the release process, so it’s not the right place for money you might need for something other than a home deposit.

The Bottom Line

The FHSS scheme is one of the easiest wins available to first home buyers who are already saving. It won’t replace the need for a solid deposit strategy, but combined with your state’s grants and stamp duty concessions (see my other posts on these), it’s a genuinely worthwhile piece of the puzzle. It’s also worth speaking with your super fund or an accountant about how it interacts with your specific contribution caps and tax situation before you start.